FINANCE MINISTER SETS THE RECORD STRAIGHTIn a recent press conference at the Capitol, the Finance Minister, Mr. Abraham Goldfarb slammed the Labour Party for their wild accusations. He was quoted: "Unncessary spending or "wild taxation", which of course the JLP do not make clear what is, is however not the cause of this recession. It's simply a slump in the consumption; namely a bit of crunch in the aggregate demand. We're now looking into stimulating this demand in order to bring the economy moving again. If the Labour Party believes that more funding for the Head of Government, that now finally are able to process the applications it gets, is the source for this recession, they are in dire need of education; I'm happy to help."
There is no doubt that this recession has made Jakanians feel confused and bitter, which party and who they'll blame will likely come out in the elections which are to occur in June this year. The Finance Minister was clearly angry at the Labour Party, for "..trying to confuse people and lay the blame on us." The Hawk Institute is releasing it's report on the crunch, and we'll likely see a valid hypothesis of where it occured produced by them, but until that time, there are floating ideas and speculations from everywhere. Mr. Goldfarb wanted to vindicate the government's policies a little further during the press conference. "Sure, we're going to get this re-structuring of the tax system thrown at us as a source, but most economists will tell you it happened before that. The bubble burst right before we passed the legislation. Second, I want to mention this jab at the deficit by the Labourites; they voted for cutting the sales taxes, but not cutting spending nor raising the income taxes, so if they got it their way, we'd be looking at close to a 2 trillion JAR deficit!"
The government has taken drastic steps, by lowering income taxes and raising spending in key areas such as science and technology, trade and industry, and more for education now that unemployment is likely to spike and more adults are going to seek further education. "We're taking real steps, and we'd love to work with the Labour Party, but as long as they keep lying to the Jakania people and hindering real growth from occuring, they won't be a valuable partner." The Finance Minister responded to questions on the negotiations.
We'll keep you updated on the recession and the government. Keep yourself updated on the key news to stay informed on the election which occurs in few months.
Stay tuned at the Jakania News Central.